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Use the following information to answer the questions below.
Show your work.

Net unilateral transfers

-50 billion USD

Exports of goods and services

500

Net increase in the U.S. government non-reserve foreign
assets

30

Net increase in foreign ownership of U.S.-based non-reserve
assets

400

Net increase in U.S. private assets abroad

250

Investment income received in the U.S.

200

Net increase in U.S. ownership of official reserve foreign
assets

20

Imports of goods and services

600

Net increase in foreign ownership of U.S.-based reserve
assets

100

Investment income paid abroad by the U.S.

300

a.    What is the current account balance? Is it
deficit or surplus?

b.    What is the financial and capital accounts
(please combine two accounts) balance? Is it deficit or
surplus?

c.    What is the statistical discrepancy?

2. Look at each of the cases below and determine whether each
transaction would be classified under the U.S. current account,
financial, or capital account, and state whether it would enter as
a credit or debit.

a. The U.S. government sells gold for dollars.

b. The Federal Reserve purchases pound sterling foreign reserves
in Britain.

c. A California computer manufacturer purchases a $50 hard disk
from a Malaysian company.

d. A foreign owner of Apple shares deposits $10,000 in dividend
payments into a New York bank.

e. The U.S. government forgives a $50 million debt owed by a
developing country.

f. The Mexican government sells pesos to the U.S. Treasury and
buys dollars.

g. A Japanese automobile firm builds an assembly plant in
Kentucky.

h. A U.S. college student spends a year studying in
Switzerland.

i. American charities donate food to people in drought-plagued
Africa.

j. Lloyds of London sells an insurance policy to a U.S. business
firm.

k. A Swiss resident receives dividends on her IBM stock.